Shares in DX Group rose more than 25 per cent in afternoon trading after the delivery firm announced £24m in fundraising and the appointment of a new chief executive.
The Aim-listed firm announced a significant leadership shake-up was incoming after flagging an "exceptionally challenging" year in its July trading update.
This morning, DX said it had agreed terms for a £24m fundraising to address the short-term cash position of the firm, which has weakened.
The fundraising will be in the form of secured loan notes with conditional conversion rights.
DX's largest shareholder, Gatemore Capital Management, said the announcement marked "a new start for DX".
Liad Meidar, managing partner at Gatemore, said: “DX now has a healthy balance sheet and is poised to return to historic levels of profitability over the coming years under this new team. The enthusiasm amongst everyone who has been working on this is palpable.”
DX also announced that Lloyd Dunn had been appointed as chief executive with immediate effect, initially a non-board position. Ron Series will join as chairman, with Russell Black and Paul Goodson joining as non-executive directors.
Dunn said the firm believed the refinancing was "a critical step" in the opportunity to turn DX around.
In August, John Menzies called off its proposed £40m deal to sell its distribution arm to DX off the back of further due diligence in the wake of a trading update.
The company said it didn't think it was possible to reach a deal that would be in the interests of its shareholders, so it brought discussions with DX to an end.